Allegro drawing takeover interest from ON Semiconductor, Bloomberg News reports

(Reuters) -Sensor integrated circuits supplier Allegro Microsystems is drafting takeover involvement from larger rival ON Semiconductor, Bloomberg News reported connected Sunday, citing radical acquainted with the matter.

Onsemi has been moving with advisers successful caller months to prosecute Allegro, the Bloomberg study said, adding that it's imaginable different suitors could look for Allegro and the institution hasn't indicated whether it would beryllium unfastened to a imaginable sale.

Semiconductor companies funny successful bulking up their automotive capabilities could look astatine buying Allegro, the Bloomberg study said.

Onsemi said it does not remark connected rumors and speculation. Allegro did not instantly respond to a Reuters petition for comment.

Allegro has a marketplace valuation of $4.11 cardinal portion Onsemi is valued astatine $19.83 billion, according to LSEG data.

Manchester, New Hampshire-based Allegro connected Monday appointed Mike Doogue arsenic its president and CEO, succeeding Vineet Nargolwala.

Onsemi connected Tuesday said it had initiated a restructuring program aimed astatine reducing operational costs, resulting successful the layoff of astir 2,400 of its employees crossed each concern divisions worldwide successful 2025.

In February, the Phoenix, Arizona-based Onsemi forecast first-quarter gross beneath Wall Street expectations, deed by softening request for its automotive chips.

(Reporting by Rishabh Jaiswal successful Bengaluru; Editing by Alistair Bell and Bill Berkrot)